Appraiser Independence Violation?

[gregb]

That has been the a part of some real estate contract for as long as I can remember and actually makes sense as any listing agent who has been around for a while has likely been burned by lenders who send approval/pre-approval letters and then subsequently turn down the borrower's loan application based on information that the lender already knew or should have known (i.e., something other than an appraisal/collateral issue)

More involved than a listing agent protecting a seller from getting burned...

http://www.searchlightcrusade.net/2015/02/respa_forbids_steering_even_ju.html

 

[miktay]

I don't understand why there is a resistance by some to obtain potential data or even have communication with real estate agents.
I prefer to talk to the agents involved in a sale (ideally, both of them). They can provide me insight/information that I likely do not have or cannot obtain without talking to them.
I never qualify what they can give me (give me anything you want). If I have a process I use during the inspection (I don't want to be bugged) I'll ask them to hold off until I'm finished; that way I can concentrate on the inspection and then give them my full attention.
There is always the risk of having an idiot agent. I'm sure they run into idiot appraisers. But how the interchange of information can possibly contaminate my process escapes me.
How does their data impact my independence, impartiality, or objectivity? (answer: it doesn't)

This is what I would write (if I was as smart as Denis!)

 

[TRESinc]

If other good/competent/experienced appraisers are available who don't peeve off agents for no good reason, then why would a lender keep using an insolent appraiser?. That would be an extremely stupid business decision. I've got news for you, both lenders and appraisers in business in order to make money and there is no reason that the goal of making money cannot be achieved while acting with integrity. Please explain how firing someone who peeves of potential sources of business for no good reason, especially after having a discussion with them about the appropriateness of their conduct is not acting with integrity.

let's flip the script. if you have a lender who causes an appraiser grief (say via stips or hounding for updates) the appraiser would get rid of them for a more favorable client who does not operate the same way. why should it be any different for a lender?

 

[timd354]

let's flip the script. if you have a lender who causes an appraiser grief (say via stips or hounding for updates) the appraiser would get rid of them for a more favorable client who does not operate the same way. why should it be any different for a lender?

Exactly correct and that is exactly why when I was still out on the street, I would not work for certain lenders or mortgage brokers

 

[Mike Garrett RAA]

Wow....this has really stirred up a hornets nest! Let me see if there is a consensus?

An agent should not attempt to have an appraiser excluded UNLESS there is a conflict of interest.

Dodd Frank, Fannie Mae guidelines, etc. are reasonably clear about appraiser selection. It is the lender's responsibility but should not be done by those involved in loan production.

The appraiser should act professionally and that includes not pissing off the agent.

The letter in question was probably not the best.

Appraiser independence isn't really the issue in this case.

Does that sum it up?

OK, so now how about this. I received a call from SIRVA earlier this week and was asked if I was available for a relocation appraisal assignment. I told them I was and was informed I would be put on a list of 4 or 5 appraisers to be given to the home owner who would then decide on which one would do the appraisal. How does that fit in with "lender select"?.

This has happened numerous times over the years on relo appraisals I have done. Usually the home owner calls me and asks a series of questions provided by the relo company. In many cases the home owner tells me they ask their agent (if the property is listed) which appraiser they should choose. Needless to say, most say..."you were highly recommended!".

I also have several REALTOR® friend who will refer me to their clients if there is a problem in setting the listing price. Would this put me in violation of Dodd Frank? (Note: these might be trick questions)

OK, enough...now all you experts reply.

PS: I forgot to add... How about VA appraisals? The lender doesn't select the appraiser for those appraisals either. Another good reason to be on the VA panel.

 

[residentialguy]

I didn't ask for comps. I don't want comps from an agent. This is what I'm trying to avoid. I say that they can email me information as a courtesy.

I don't get your logic here. They can have very good insight into the sale, as they have been inside and sometimes now the conditions of why it sold how it sold. Of course, you must verify that information from someone in that transaction. Agents can be extremely helpful...and extremely wrong. It's your job to find out..

 

[Peter LeQuire]

DF may provide a short term firewall between a lender and an appraiser, and it may "protect" an appraiser from direct lender pressure to hit number or not deal with adverse property conditions, but it is not a permit to be rude - particularly presumptously so - and it does not provide appraisers with a guaranteed flow of work as long as delivery commitments are met and fees are competitive. I can't think of a downside to being courteous, particularly when delivering unpleasant news or when reminding others of what the current regulatory environment requires.

 

[residentialguy]

I think I gave you all your 1485 likes, Peter

 

[residentialguy]

I can't do a good inspection when someone is interrupting me.

 

[Peter LeQuire]

"I'm just the appraiser - I can't talk to you."